Shelby Sherard
CFO at Fidus Investment
Thank you, Ed, and good morning, everyone. I'll review our second quarter results in more detail and close with comments on our liquidity position. Please note, I will be providing comparative commentary versus the prior quarter Q1 twenty twenty five. Total investment income was $40,000,000 for the three months ended June 30, a $3,500,000 increase from Q1 driven by a $2,100,000 increase in interest income, primarily due to an increase in assets under management driven by the net investment activity in Q1 and approximately $600,000 of accelerated unamortized fee amortization on debt repayments, a $1,800,000 increase in fee income given by a $1,300,000 increase in prepayment fees in Q2 related to our debt investments in four portfolio companies, offset by a $600,000 decrease in dividend income from equity investments. Total expenses including income tax provision were $21,300,000 for the second quarter, a 3,100,000 increase over Q1 driven primarily by a $1,000,000 increase in the capital gains incentive fee accrual, a $1,000,000 increase in interest expense related to higher average debt balances outstanding, including the $100,000,000 note issuance in March 2025, a $400,000 increase in base management and income incentive fees and a $400,000 increase in professional fees primarily related to proxy solicitation expenses for the twenty twenty five Annual Shareholder Meeting held in Q2.